Powercor - Cost allocation method 2010

Sector: 
Segment: 
Status: 
Region: 
Commencement date: 
1 July 2009
Effective date: 
6 May 2010

Overview

Powercor's cost allocation method (CAM) governs the manner in which Powercor is allowed to allocate costs to the distribution services that it provides. The allocation of costs between the services is requried to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the distribution and other services that Powercor provides.

The assessment of Powercor's CAM was based on the advice of McGrathNicol Corporate Advisory. On 6 May 2010, the AER approved the CAM submitted by Powercor, concluding that it was consistent with the AER's Victorian Cost Allocation Guidelines and was in accordance with the requirements of the National Electricity Law and National Electricity Rules.